Yesterday United Airlines announced their second quarter results, which was their highest second quarter pre-tax income in company history. There's one especially interesting note buried in the press release about their earnings, indicating that United has signed an agreement to purchase 19 used Boeing 737-700s, with deliveries expected to begin in December. While the 737…
Continue reading: United Airlines Is Buying 19 Used 737s
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I know that Southwest is planning on retiring some of their oldest 737-700s this year - maybe United is buying some of theirs??? United has also previously bought some 737-700s from Copa Airlines, but they only have nine in their fleet now. Maybe they'll buy all of Copa's 737-700s and will get the additional ten from somewhere else???
This is an admission by United the 737 MAX grounding will go well into 2020.
The 737 MAX Flight Control Computer, based on 1980s era 80286 Chips chokes on instructions after the MCAS software patch. It is a profound problem without an easy fix.
They will be from China Southern.
19 of them are around 12-15 years old (mid-age), while the other 7 are 2012 models. I believe they will be keeping the 2012 models, and 15 years is typical retirement age for Asian airlines.
My reading of the tea leaves is that UA is hedging in the event the MAX isn’t returned to service any time soon. There has been no optimistic news coming from Boeing or anywhere else on the MAX problem, just a cascade of new issues.
Because United already flies the 737-700 the combination of low prices on used + not introducing a new type of aircraft is probably appealing.
Plus, the 737-700s will be good for the hot and high airports (Denver, Mexico, Bogota, etc) where the 737-800 might have penalties?
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They are probably also doing this so quickly with eye towards reinvestment for corporate tax deductions of liquid funds.
A correction: United Airlines has zero (0) 737 MAX 8 aircraft on order. They only have 737 MAX 9 and MAX 10 aircraft on the order books.
I honestly don't understand why airlines love the A319, but don't care that much for the 737-700 when it can fit a couple more rows in it.
I will say, the 737-700 can do some niche markets, maybe do some SNA-IAD type routes.
@ John:
agree -- the A319 is a bit wider/taller/more comfortable and quieter so it does make for a marginally better passenger experience.
@Brian interesting, and probably will mean United (and Boeing) are trying to keep this under wraps, but the call signs will give it away in time I guess.
@winngslover, yes Wow only had A320, A321 and A330, but United is “rebranding” them as 737-700
@upstater -- "The 737 MAX Flight Control Computer, based on 1980s era 80286 Chips chokes on instructions after the MCAS software patch. It is a profound problem without an easy fix."
Where do you get such disinformation from? The 1980s era Intel 80286 chips haven't been in production for almost 3 decades ... so how does the 737 MAX therefore use them for their Flight Control Computer during this 21st century? Really? Seriously?
@BillC -- Do a Google search on "boeing 737 mcas 80286"... you'll get plenty of results.
From one of the articles, "The processor at the heart of the 737 MAX jet is, startlingly, the Intel 80286 chip."
@Luke Vader -- "From one of the articles, 'The processor at the heart of the 737 MAX jet is, startlingly, the Intel 80286 chip.' ”
Yes ... there are those who make such claims, probably by assuming that the 80286 chip purportedly used on the 737 Classic line got directly carried over to the 737 MAX line. I don't know if such an assumption is, indeed, valid because there have also been generations of FMC's that tracked evolutionary generations of the 737 through NG and now MAX. For example the latest FMC model# is 2907C1 and uses the Motorola 68040 at 60-MHz with 4-MB SRAM and 32-MB code+data memory. On even newer generations of Boeing airliners (B777, B787), it has been reported that they switched to use the AMD 29040 RISC microprocessor instead. Furthermore, if the MCAS processor(s) happen(s) to be totally separate from the legacy FMC processors, then there really is *no* reason to use the 80286 at all! Are there even Intel-licensed manufacturers of the 80286 chip at this point in time, since Intel has reportedly halted production of that chip almost 3 decades ago?
It is actually very distressing that the aviation industry (apparently commercial as well as military) will stick to using such out-of-date legacy processors across such long time periods! They really take that idea of "if it ain't broke, don't fix it" to the "MAX" (pun intended)! 😛
Maybe Air France-KLM? KLM and Transavia are getting rid of their 737-700s... KLM has got 18 (or maybe a few less) 737s and Transavia (KLM subsidiary) currently owns 6 737-700s.
A 286 can easily handle the processing needed. What is concerning is that the programming or design is so poor if it is not handling the processing in this case.
SAS could be another source of the planes, as they're getting rid of all their Boeing planes.